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Hi, IFRS 9 says any remeasurements should go through profit and loss. So if the discounted provision is partially reduced, does part of the release go through interest/finance costs and the rest through other income for example ? If it wasn’t at present value there would be no element going through interest?
If consideration is to be paid in the future, it will always be discounted.
The key thing to state in the exam is that the unwinding of the discount / any other changes will be in the P&L – I think they would normally be in finance costs – but, as long as you say P&L, that will be OK.
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